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Australia lost the "AAA" credit rating in 1986; And the downward trend in interest rates continued
Topic Started: 19 Dec 2016, 10:04 AM (3,288 Views)
Rufus
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Terry
19 Dec 2016, 12:27 PM
Yes, you might see borrowing rates stay low, but you might also see access to "easy money" get more difficult for banks and for the suburbanites. The majority are happy with the status quo and are resistant to change. Whether or not things pan out for the "business as usual" scenario has yet to be seen. No need to get too spooked.
yes you might see further tightening of credit by APRA, although that isn't being driven by interest rates on bond markets, or by bank borrowing rates.
Edited by Rufus, 19 Dec 2016, 12:45 PM.
Take risks - if you win you will become wealthy, if you lose you will become wise
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Rastus2
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Rufus
19 Dec 2016, 12:02 PM
I would think that 99.9% of people have no idea that we lost it in December 1986 and got it back in October 2002.
They seem to think we were born with it and it's never been otherwise, or they really don't care.
indeed... If you read back, you may notice I said "period after", not the event itself.


The events surrounding it are also fairly well known by many... "On 14 May 1986 then Australian Treasurer Paul Keating stated that Australia might become a banana republic. "

Shadow - Defrauded his Bank ? 2015 I have 9 different loans and my bank had no idea which ones were personal and which were investment. They had half of them classed incorrectly. When this change came in they asked me to tell them if any personal loans were incorrectly classed as investment, which I did, and they switched them to personal for the lower rate. They also had a couple of investment loans incorrectly classed as personal. They didn't ask me about those. So they stay on the lower rate too. Worked out pretty well. :)
Shadow - 2008 Sydney Median House Price 1.25M by 2014-2015

Shadow : I think this boom has already begun in several cities. My prediction :
Peak of boom: 2014-2015. Sydney Median Price: $1,250,000 Bottom of bust: 2017-2018. Sydney Median Price: $1,100,000

Shadow's Original 2010 House Boom and Crash prediction http://s836.photobucket.com/user/rastus22/media/shady-orig-2010-chart.png.html?sort=3&o=0

Shadow's attempt to edit his 2010 chart in 2015 and replace it with one that does not show a crash in 2013 http://s836.photobucket.com/user/rastus22/media/Screen%20Shot%202015-06-06%20at%207.12.52%20pm_1.png.html
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Rufus
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Rastus2
19 Dec 2016, 12:48 PM
indeed... If you read back, you may notice I said "period after", not the event itself.


The events surrounding it are also fairly well known by many... "On 14 May 1986 then Australian Treasurer Paul Keating stated that Australia might become a banana republic. "
And he was wrong.
I doubt that any leader in Government would be that idiotic again.
Take risks - if you win you will become wealthy, if you lose you will become wise
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Rastus2
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Rufus
19 Dec 2016, 12:53 PM
And he was wrong.
I doubt that any leader in Government would be that idiotic again.

Do you honestly think his intent was to claim it was going to happen ?

I always thought it was aimed to put the fear into the public's mind and ram through reform changes that were meeting resistant in his own party.... as it turned out, it was a catalyst for major changes far earlier than otherwise would have been achieved.

His quote:
If this Government cannot get the adjustment, get manufacturing going again, and keep moderate wage outcomes and a sensible economic policy, then Australia is basically done for. We will end up being a third rate economy... a banana republic.


His biographer seemed to think it was a mix of Keating over reach, slip of the tongue, and opportunity grabbing that caused this comment.

http://www.theage.com.au/news/business/20-years-from-keating-what-price-a-banana-now/2006/05/14/1147545209134.html

Shadow - Defrauded his Bank ? 2015 I have 9 different loans and my bank had no idea which ones were personal and which were investment. They had half of them classed incorrectly. When this change came in they asked me to tell them if any personal loans were incorrectly classed as investment, which I did, and they switched them to personal for the lower rate. They also had a couple of investment loans incorrectly classed as personal. They didn't ask me about those. So they stay on the lower rate too. Worked out pretty well. :)
Shadow - 2008 Sydney Median House Price 1.25M by 2014-2015

Shadow : I think this boom has already begun in several cities. My prediction :
Peak of boom: 2014-2015. Sydney Median Price: $1,250,000 Bottom of bust: 2017-2018. Sydney Median Price: $1,100,000

Shadow's Original 2010 House Boom and Crash prediction http://s836.photobucket.com/user/rastus22/media/shady-orig-2010-chart.png.html?sort=3&o=0

Shadow's attempt to edit his 2010 chart in 2015 and replace it with one that does not show a crash in 2013 http://s836.photobucket.com/user/rastus22/media/Screen%20Shot%202015-06-06%20at%207.12.52%20pm_1.png.html
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Terry
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Rufus
19 Dec 2016, 12:44 PM
yes you might see further tightening of credit by APRA, although that isn't being driven by interest rates on bond markets, or by bank borrowing rates.
I was more referring to the reliance on wholesale funding to keep the banks profitable and keep the suburbanites credit lines flowing.

Imagine if wholesale funding didn't exist. Would would be different? Anything? I'm interested in cheerleaders' perspectives on this.
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Trollie
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Rastus2
19 Dec 2016, 01:23 PM

Do you honestly think his intent was to claim it was going to happen ?

All you can do his take him at his word. Otherwise you can craft it to mean anything you like.
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Rastus2
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Trollie
19 Dec 2016, 01:53 PM
All you can do his take him at his word. Otherwise you can craft it to mean anything you like.

Yes, it's called Politics.
Shadow - Defrauded his Bank ? 2015 I have 9 different loans and my bank had no idea which ones were personal and which were investment. They had half of them classed incorrectly. When this change came in they asked me to tell them if any personal loans were incorrectly classed as investment, which I did, and they switched them to personal for the lower rate. They also had a couple of investment loans incorrectly classed as personal. They didn't ask me about those. So they stay on the lower rate too. Worked out pretty well. :)
Shadow - 2008 Sydney Median House Price 1.25M by 2014-2015

Shadow : I think this boom has already begun in several cities. My prediction :
Peak of boom: 2014-2015. Sydney Median Price: $1,250,000 Bottom of bust: 2017-2018. Sydney Median Price: $1,100,000

Shadow's Original 2010 House Boom and Crash prediction http://s836.photobucket.com/user/rastus22/media/shady-orig-2010-chart.png.html?sort=3&o=0

Shadow's attempt to edit his 2010 chart in 2015 and replace it with one that does not show a crash in 2013 http://s836.photobucket.com/user/rastus22/media/Screen%20Shot%202015-06-06%20at%207.12.52%20pm_1.png.html
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stinkbug
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Rufus
19 Dec 2016, 10:39 AM

Both sides have done this
This. We haven't had decent financial management in government since Howard's third term, I reckon. It's been over 10 years of BS.
---------------------------------------------------------------

While it's true that those who win never quit, and those who quit never win, those who never win and never quit are idiots.

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stinkbug
19 Dec 2016, 03:46 PM
This. We haven't had decent financial management in government since Howard's third term, I reckon. It's been over 10 years of BS.
Ever since little Johnny was ousted by Kevin 07 we have not had a true leader. More a poor excuse for one. And then to think how many times it has changed hands since then and then the way they went about it all when Gillard replaced Kevin. And then the way we went to bed one night and woke up the next morning to find Malcolm Turnbull was PM. Howard was in for around ten years, since then it has been clown after clown. A circus.

Maybe we held our triple AAA this time. But for how much longer ?

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Jon Snow
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stinkbug
19 Dec 2016, 03:46 PM
This. We haven't had decent financial management in government since Howard's third term, I reckon. It's been over 10 years of BS.
:lol :lol

Howard.

:lol :lol
Financial management.

Jesus you're a leech!
Speak when you are angry and you will make the best speech you will ever regret.
Ambrose Bierce
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